STICHFIX

Presented by : -
Group 3
Ankur Khare
Manisha Mudgal
Monalisa Bai
Shubham Parag
Section Break
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ARTIFICIAL INTELLIGENCE

E-COMMERCE 01 Contents
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02 Contents
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04 Contents
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AGENDA
STYLE
 Business Model

AI, Machine Learning, NLP as

Deposit to be well as Data Science will through
adjusted against a up potential options/trends that
purchase and slab- can be chosen by customers
based discounting
model with only 14
days return period

Perfect 3-D Body

Scanning to get better
idea of body ratios and
fittings
Basis customer’s budget, choices and
trends, stylists will suggest 5 clothing
options using virtual mirror technology.
Trials on 3D images of customers to be
done and shortlisted options to be sent Style Surveying to be done with an
to customer for physical trial purpose exhaustive questionnaire including
post stitching. INR 500 to be kept as a budget range from
non-refundable deposit potential customer
 Key Differentiators
Significantly

n of Recognized brand
a tio ion Trusted by Millions of

l gam ash customers across the

m a &F globe, Brand awareness

A ch r and loyalty has given a Huge Customer
Te me significant advantage to
Database
t
s co Stitch Fix
A huge customer data base
Cu ntri of approx. 3 Mn customer
Ce lity
which has been built over
years
a s
Blend of Tech and
Fashion
Qu ylist
St d h
a n t
Equal weightage is given to
Tech/AI and Fashion
Hugely Customer Br r e ng
Centric Company
St s e
Ba
Trends. This amalgamation
has been the clear winner StitchFix has a USP of doing
for the company in giving everything keeping customer in Talented bunch of a ta
accurate and wide variety of center stage, which has kept Stylists D
options to customers them growing over the last
decade
Major advantage of Stitch
Fix is having a great
network of stylist across the
globe (Full Time and Part
Time)
 Solution Architecture

Marketin

Team
Stylist
Users
End

g
s
Internet Internal &
Presentation Layer(Responsive design/Mobile SDK)
browser External
Application Security Management (Authentication, Authorization)

Business Logic Layer Applications

Login Content Mgmt. Social Others Site Analytics Order

Preferences Profile Media Fulfilment
Publish Content Web Site
Admin
Facebook Analysis Statistics Inventory
Schedule Tack DAM
SEO Mgmt. system
Fix status Twitter
Personalization
Instagram SMS/E- Insights Loyalty
Payments
Blogs mail

Integration Layer
Payment Gateway Reports Campaign
Pinterest
Mgmt.
Recommendations Warehouse Customer Demand Design Modelling
Supplier Portal
allocation Mgmt.
Inventory Mgmt. Matchmaking
CRM
Data Access Layer
Transaction Payment
Price Details Matched results Personalization Inventory details
Details Gateway
Data Layer
Email Mktg.

Inventory/ Operation/ Content Third party

Customers Profile data source
Merchandise Transaction Management
database
Database Database Database
 Algorithms
Recommendations : Use of
Beta Binomial algorithm
based on user preference,
similar profiles, synonyms
Customer Demand
Management: Use of trend
projection algorithm
Inventory Management: Use of
Economic Order Quality of
continuous review. Use of Just
in time inventory
Design Modelling: Use of
Generative Adversarial Network
Intelligent Logistics : This
Warehouse Location : Use of problem of pick-path routing is
load distance method an instance of the NP-hard
Traveling Salesman Problem.
Client Experience &
Feedback : Algorithms for
feedback management
Matchmaking: Use of
semantics to understand
the preferences
Personalization :
Personalize the site banners
based on the profile
 Product Roadmap
Captive Setup
• Operations mgmt./Compliance
• Partnerships
• Inventory setup
• Data Procurement/Integration
• Technology Integrations
• Advertisements & Social Media
Marketing
Month - 6
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Month XX
Launch/Phase 1
• Web/Mobile App. Phase 2
• Updated Order fulfilment • Campaign Management
• SEO, Analytics • Personalization
• Social Media Marketing • Warehouse expansion
• Pilot/Warehoused in selected cities • CRM
• Partnership with Tier 1 brands • Email Marketing
• 3D- Body scanning
Month 0 Month 3
Phase 3
• Targeting
• Personalization improvement
Phase 4 • Loyalty Mgmt.
• Supplier portal • Warehouse expansion
• Real time inventory • Partnership with Tier 2//3 brands
mgmt.
Month 12 Month 6
 MAJOR INVESTMENTS
MARKETING & CRUCIAL
CUSTOMER DATA ORDER TECHNOLOGY OPERATIONS
CUSTOMER HIRING/PARTNE
FULFILMENT INTEGRATIONS • Setup
Procurement of data ACQUSITION RSHIPS
from different Partner with : - • Inventory • Registrations
• Social Media Management • Data Science • Compliances
sources : -
• Logistics marketing System leader • Inventory
• Order fulfillment • Channel • Logistics • Hire stylists • Recruitments
• Agencies
• • Vendors Partners • Order fulfillments • Fashion houses
Loyalty
• • Campaigns • Campaigns
Credit card
• Advertisement • Loyalty apps.
• Market trends
• Promote “Make • Third parties
• Demographic
in India”
• Sponsorships Optimized
Operations
Local Stylists & Data
Science
Seamless combination
integration
Attract, Engage,
Retain, Nurture
Change the
workflow
Accumulate Data for
Algorithms
 Market Segment Business Valuation

Industry Growth Target Audience Annual Income Shoppers Intrinsic Value Investment Opportunity
14.2% CAGR 10 Million $ 15,000+ Fashion forward USD 75 MM USD 18.75 MM for
25% Equity

Stitchfix 5 years revenue projection

$140,000,000 100%
90%
Use of funds
$120,000,000 Sales & Customer Inventory & Talent
80%
$100,000,000 Marketing Acquisition Logistics Acquisition
70%
60% 40% 25% 25% 10%
$80,000,000
50%
$60,000,000
40%

$40,000,000 30%
20%
$20,000,000
10%
$0
YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0% Growth
EBIT COGS MARKETING SG&A REVENUE ROI – Year 5 Revenue Growth
40% ↑ 3 years - 49% ↑
5 years - 94% ↑
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 Algorithms
Recommendations
01 Use of Beta Binomial algorithm based on user preference, similar profiles,
semantics, synonyms

Customer Demand Management

02 Use of trend projection algorithm

Inventory Management
03 Use of Economic Order Quality of continuous review. Use of Just in time
inventory

Warehouse Location
04 Use of load distance method

Design Modelling

05 Use of Generative Adversarial Network

 Solution Architecture

Marketin

Team
Stylist
Users
End

g
s
Internet Internal &
Presentation Layer(Responsive design/Mobile SDK)
browser External
Business Logic Layer Applications
Application Security Management (Authentication,

Login Content Mgmt. Social Others Site Analytics Order

Preferences Profile Media Fulfilment
Publish Content Web Site
Admin
Facebook Analysis Statistics Inventory
Schedule Tack DAM
SEO Mgmt. system
Fix status Twitter

Integration Layer
Personalization
Insights Loyalty
Authorization)

Payments Instagram SMS/E-

mail Reports
Payment Gateway Recommendations Pinterest Campaign
Mgmt.
Data Access Layer
Transaction Supplier Portal
Price Details Matched results Personalization Inventory details
Details
Data Layer CRM

Payment
Content Gateway
Customers Profile Inventory Operation/
Transaction Management
database Database Database Email Mktg.
Database

Third party
data source